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Khong Guan

SGX:K03
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
K03
SGX
SGD53M
Market Cap
  1. Home
  2. SG
  3. Consumer Retailing
Company description

Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products primarily in Singapore and Malaysia. The last earnings update was 126 days ago. More info.


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K03 Share Price and Events
7 Day Returns
0.5%
SGX:K03
2.6%
SG Consumer Retailing
0%
SG Market
1 Year Returns
2.5%
SGX:K03
-14.8%
SG Consumer Retailing
1%
SG Market
K03 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Khong Guan (K03) 0.5% 3% 2% 2.5% 5.7% -2.9%
SG Consumer Retailing 2.6% 0.8% -0.6% -14.8% 8.5% -26%
SG Market 0% 3.1% 0.3% 1% 9.2% -5.5%
1 Year Return vs Industry and Market
  • K03 outperformed the Consumer Retailing industry which returned -14.8% over the past year.
  • K03 outperformed the Market in Singapore which returned 1% over the past year.
Price Volatility
K03
Industry
5yr Volatility vs Market

K03 Value

 Is Khong Guan undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Khong Guan to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Khong Guan.

SGX:K03 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year SG Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:K03
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.503 (1 + (1- 17%) (0%))
0.667
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.8 * 5.96%)
7.07%

Discounted Cash Flow Calculation for SGX:K03 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Khong Guan is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SGX:K03 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 7.07%)
2020 0.01 Est @ -56.98% 0.01
2021 0.01 Est @ -39.19% 0.01
2022 0.01 Est @ -26.75% 0.00
2023 0.00 Est @ -18.03% 0.00
2024 0.00 Est @ -11.93% 0.00
2025 0.00 Est @ -7.66% 0.00
2026 0.00 Est @ -4.67% 0.00
2027 0.00 Est @ -2.58% 0.00
2028 0.00 Est @ -1.11% 0.00
2029 0.00 Est @ -0.09% 0.00
Present value of next 10 years cash flows SGD0.04
SGX:K03 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SGD0.00 × (1 + 2.3%) ÷ (7.07% – 2.3%)
SGD0.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD0.08 ÷ (1 + 7.07%)10
SGD0.04
SGX:K03 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD0.04 + SGD0.04
SGD0.08
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD0.08 / 25.81
SGD0
SGX:K03 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD0.00
Current discount Discount to share price of SGD2.04
= -1 x (SGD2.04 - SGD0.00) / SGD0.00
-66049.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Khong Guan is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Khong Guan's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Khong Guan's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:K03 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in SGD SGD-0.02
SGX:K03 Share Price ** SGX (2019-07-17) in SGD SGD2.04
Asia Consumer Retailing Industry PE Ratio Median Figure of 45 Publicly-Listed Consumer Retailing Companies 21.52x
Singapore Market PE Ratio Median Figure of 327 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Khong Guan.

SGX:K03 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:K03 Share Price ÷ EPS (both in SGD)

= 2.04 ÷ -0.02

-135.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Khong Guan is loss making, we can't compare its value to the Asia Consumer Retailing industry average.
  • Khong Guan is loss making, we can't compare the value of its earnings to the Singapore market.
Price based on expected Growth
Does Khong Guan's expected growth come at a high price?
Raw Data
SGX:K03 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -135.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
32.8%per year
Asia Consumer Retailing Industry PEG Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 3.45x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Khong Guan, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Khong Guan's assets?
Raw Data
SGX:K03 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in SGD SGD2.40
SGX:K03 Share Price * SGX (2019-07-17) in SGD SGD2.04
Singapore Consumer Retailing Industry PB Ratio Median Figure of 7 Publicly-Listed Consumer Retailing Companies 0.99x
Singapore Market PB Ratio Median Figure of 431 Publicly-Listed Companies 0.73x
SGX:K03 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:K03 Share Price ÷ Book Value per Share (both in SGD)

= 2.04 ÷ 2.40

0.85x

* Primary Listing of Khong Guan.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Khong Guan is good value based on assets compared to the SG Consumer Retailing industry average.
X
Value checks
We assess Khong Guan's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Khong Guan has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

K03 Future Performance

 How is Khong Guan expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Khong Guan, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Khong Guan expected to grow at an attractive rate?
  • Khong Guan's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Khong Guan's earnings growth is expected to exceed the Singapore market average.
  • Unable to compare Khong Guan's revenue growth to the Singapore market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SGX:K03 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:K03 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 32.8%
Asia Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 23.1%
Asia Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 12.2%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.6%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:K03 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:K03 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SGX:K03 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-01-31 65 1 0
2018-10-31 63 1 0
2018-07-31 61 2 1
2018-04-30 59 1 2
2018-01-31 57 0 2
2017-10-31 57 1 2
2017-07-31 57 1 1
2017-04-30 58 1 1
2017-01-31 58 1 1
2016-10-31 59 0 0
2016-07-31 59 -2 0
2016-04-30 60 -2 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Khong Guan's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Khong Guan is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:K03 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Khong Guan Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:K03 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SGX:K03 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-01-31 -0.02
2018-10-31 0.01
2018-07-31 0.04
2018-04-30 0.06
2018-01-31 0.08
2017-10-31 0.06
2017-07-31 0.05
2017-04-30 0.04
2017-01-31 0.02
2016-10-31 0.01
2016-07-31 0.00
2016-04-30 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Khong Guan will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Khong Guan's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Khong Guan has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

K03 Past Performance

  How has Khong Guan performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Khong Guan's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Khong Guan does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Khong Guan's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Khong Guan's 1-year growth to the Asia Consumer Retailing industry average as it is not currently profitable.
Earnings and Revenue History
Khong Guan's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Khong Guan Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:K03 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 65.44 -0.39 4.15
2018-10-31 63.21 0.32 4.07
2018-07-31 60.99 1.04 4.00
2018-04-30 59.20 1.52 3.98
2018-01-31 57.41 1.99 3.96
2017-10-31 57.37 1.64 3.93
2017-07-31 57.34 1.30 3.89
2017-04-30 57.84 0.97 3.89
2017-01-31 58.35 0.64 3.89
2016-10-31 58.62 0.35 3.93
2016-07-31 58.89 0.06 3.96
2016-04-30 59.63 0.39 3.98
2016-01-31 60.38 0.72 4.01
2015-10-31 61.48 0.98 4.02
2015-07-31 62.58 1.24 4.04
2015-04-30 62.82 1.29 3.96
2015-01-31 63.07 1.34 3.88
2014-10-31 62.63 1.33 3.84
2014-07-31 62.20 1.33 3.79
2014-04-30 63.57 1.34 3.78
2014-01-31 64.94 1.36 3.76
2013-10-31 72.71 8.03 3.63
2013-07-31 80.48 14.70 3.51
2012-08-01 63.42 1.89 3.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Khong Guan has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Khong Guan has efficiently used its assets last year compared to the Asia Consumer Retailing industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Khong Guan improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Khong Guan's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Khong Guan has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

K03 Health

 How is Khong Guan's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Khong Guan's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Khong Guan is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Khong Guan's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Khong Guan's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Khong Guan has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Khong Guan Company Filings, last reported 5 months ago.

SGX:K03 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 64.68 0.00 13.26
2018-10-31 64.68 0.00 13.26
2018-07-31 66.80 0.00 17.59
2018-04-30 66.80 0.00 17.59
2018-01-31 66.60 0.00 17.25
2017-10-31 66.60 0.00 17.25
2017-07-31 64.36 0.00 20.68
2017-04-30 64.36 0.00 20.68
2017-01-31 63.36 0.00 23.53
2016-10-31 63.36 0.00 23.53
2016-07-31 65.14 0.00 24.83
2016-04-30 65.14 0.00 24.83
2016-01-31 65.90 0.20 25.32
2015-10-31 65.90 0.20 25.32
2015-07-31 68.54 0.00 29.35
2015-04-30 68.54 0.00 29.35
2015-01-31 68.91 0.00 27.76
2014-10-31 68.91 0.00 27.76
2014-07-31 71.22 0.03 28.54
2014-04-30 71.22 0.03 28.54
2014-01-31 68.97 0.16 29.79
2013-10-31 68.97 0.16 29.79
2013-07-31 70.91 0.00 32.33
2012-08-01 68.94 0.41 18.04
  • Khong Guan has no debt.
  • Khong Guan has no debt compared to 5 years ago when it was 0.2%.
  • Khong Guan has no debt, it does not need to be covered by operating cash flow.
  • Khong Guan has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Khong Guan's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Khong Guan has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

K03 Dividends

 What is Khong Guan's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.47%
Current annual income from Khong Guan dividends.
If you bought SGD2,000 of Khong Guan shares you are expected to receive SGD29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Khong Guan's pays a lower dividend yield than the bottom 25% of dividend payers in Singapore (2.59%).
  • Khong Guan's dividend is below the markets top 25% of dividend payers in Singapore (5.51%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:K03 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Asia Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.7%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 278 Stocks 3.8%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.7%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.6%
Singapore Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:K03 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
SGX:K03 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2018-11-20 0.030 1.515
2018-10-02 0.030 1.549
2017-11-29 0.030 1.490
2016-09-29 0.030 1.438
2015-10-02 0.030 1.489
2014-10-15 0.030 1.446
2013-09-27 0.030 1.415
2012-11-12 0.030 1.432
2012-09-28 0.030 1.541
2012-07-04 0.000 0.000
2011-06-30 0.030 1.904
2010-06-25 0.030 2.026
2009-06-29 0.030 2.535

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Khong Guan is not paying a notable dividend for Singapore, therefore no need to check if the payments are stable.
  • Khong Guan is not paying a notable dividend for Singapore, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Khong Guan's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Khong Guan's dividends as it is not paying a notable one for Singapore.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Khong Guan's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Khong Guan afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Khong Guan has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

K03 Management

 What is the CEO of Khong Guan's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Soo Eng Chew
COMPENSATION SGD496,000
AGE 71
TENURE AS CEO 12.5 years
CEO Bio

Mr. Chew Soo Eng is Managing Director at Khong Guan Limited since January 11, 2007 and its Director since March 3, 2006. He has been the Managing Director at Khong Guan Flour Milling Limited since January 11, 2007. Mr. Chew serves as the Managing Director of United Malayan Flour (1996) Sdn Bhd. He served as Manager of Khong Guan Flour Milling Ltd. in charge of its overall business operations until January 11, 2007. Mr. Chew was commissioned as a 2nd Lieutenant in the SAF and was later promoted to Captain during his reservist service. He serves as an Executive Director of United Malayan Flour (1996) Sdn. Bhd. He has been an Executive Director of Khong Guan Food Products Pte Ltd since March 3, 2006. Mr. Chew serves as a Director of several companies within the Khong Guan Group of Companies. He holds a Bachelor of Commerce (Accounting) from University of Western Australia in 1969.

CEO Compensation
  • Soo Eng's compensation has increased whilst company is loss making.
  • Soo Eng's remuneration is higher than average for companies of similar size in Singapore.
Management Team

Soo Lin Chew

TITLE
Executive Chairman
COMPENSATION
SGD331K
AGE
70

Soo Eng Chew

TITLE
MD & Executive Director
COMPENSATION
SGD496K
AGE
71
TENURE
12.5 yrs

Daniel Chew

TITLE
Executive Director
COMPENSATION
SGD181K
AGE
44

Eng Chuan Koe

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Khong Guan board of directors in years:

5.5
Average Tenure
70
Average Age
  • The tenure for the Khong Guan board of directors is about average.
Board of Directors

Soo Lin Chew

TITLE
Executive Chairman
COMPENSATION
SGD331K
AGE
70
TENURE
11.9 yrs

Soo Eng Chew

TITLE
MD & Executive Director
COMPENSATION
SGD496K
AGE
71
TENURE
13.3 yrs

Daniel Chew

TITLE
Executive Director
COMPENSATION
SGD181K
AGE
44
TENURE
3.4 yrs

Willie Tay

TITLE
Lead Independent Director
COMPENSATION
SGD40K
TENURE
5.5 yrs

Peng Teng Ng

TITLE
Independent Non-Executive Director
COMPENSATION
SGD18K
TENURE
16 yrs

Jih-Shian Yeo

TITLE
Independent Non-Executive Director
COMPENSATION
SGD9K
TENURE
1.4 yrs

Alex Tan

TITLE
Independent Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
15. Jan 19 Buy Khong Guan Development Pte Ltd Company 15. Jan 19 15. Jan 19 1,258,000 SGD1.90 SGD2,390,200
X
Management checks
We assess Khong Guan's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Khong Guan has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

K03 News

Simply Wall St News

What Did Khong Guan Limited's (SGX:K03) CEO Take Home Last Year?

Soo Eng Chew has been the CEO of Khong Guan Limited (SGX:K03) since 2007. … How Does Soo Eng Chew's Compensation Compare With Similar Sized Companies. … Our data indicates that Khong Guan Limited is worth S$50m, and total annual CEO compensation is S$496k.

Simply Wall St -

Is There More To Khong Guan Limited (SGX:K03) Than Its 6.6%Returns On Capital?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

Simply Wall St -

How Financially Strong Is Khong Guan Limited (SGX:K03)?

The direct benefit for Khong Guan Limited (SGX:K03), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is K03 growing fast enough to value financial flexibility over lower cost of capital … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.

Simply Wall St -

Is Khong Guan Limited's (SGX:K03) High P/E Ratio A Problem For Investors?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Khong Guan has a P/E ratio of 51.02, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Do Institutions Own Khong Guan Limited (SGX:K03) Shares?

If you want to know who really controls Khong Guan Limited (SGX:K03), then you'll have to look at the makeup of its share registry. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Khong Guan is not a large company by global standards.

Simply Wall St -

Is Khong Guan Limited (SGX:K03) An Attractive Dividend Stock?

Historically, Khong Guan Limited (SGX:K03) has been paying a dividend to shareholders. … Does Khong Guan tick all the boxes of a great dividend stock? … See our latest analysis for Khong Guan

Simply Wall St -

Khong Guan Limited (SGX:K03): The Return Story

and looking to gauge the potential return on investment in Khong Guan Limited (SGX:K03). … To understand Khong Guan’s capital returns we will look at a useful metric called return on capital employed. … Calculating Return On Capital Employed for K03

Simply Wall St -

How Did Khong Guan Limited's (SGX:K03) 1.9% ROE Fare Against The Industry?

To keep the lesson grounded in practicality, we'll use ROE to better understand Khong Guan Limited (SGX:K03). … Khong Guan has a ROE of 1.9%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Tempted To Sell Khong Guan Limited (SGX:K03) At Its Current PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind.

Simply Wall St -

Is Khong Guan Limited's (SGX:K03) CEO Incentives Align With Yours?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability

Simply Wall St -

K03 Company Info

Description

Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products primarily in Singapore and Malaysia. It operates through three segments: Trading of Wheat Flour and Consumer Goods, Investment Trading, and Investment Holding. The company is involved in the wholesale of wheat flour, general goods, biscuits, consumer goods, and related products, as well as animal feed. In addition, it trades in shares listed in Singapore and Malaysia. The company was formerly known as Khong Guan Flour Milling Limited and changed its name to Khong Guan Limited in November 2016. Khong Guan Limited was incorporated in 1960 and is based in Singapore.

Details
Name: Khong Guan Limited
K03
Exchange: SGX
Founded: 1960
SGD52,657,540
25,812,520
Website: http://www.khongguanlimited.com
Address: Khong Guan Limited
Khong Guan Building,
2 MacTaggart Road No. 03-01,
Singapore,
368078,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX K03 Ordinary Shares Singapore Exchange SG SGD 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
Khong Guan employees.
Industry
Food Distributors
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:37
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2018/09/28
Last earnings filing: 2019/03/15
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.